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horsena [70]
3 years ago
15

On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and $325,000, respecti

vely. On the date of the sale, the book value of the patent was $120,000, and the book value of the equipment was $400,000 (cost of $550,000 less accumulated depreciation of $150,000). Prepare the journal entries to record the sales of the patent and equipment.
Business
1 answer:
cupoosta [38]3 years ago
8 0

Answer:

Journal entry to record the Sale of Patent

Debit : Cash $750,000

Credit : Patent at Book Value $120,000

Credit : Profit and Loss $630,000

Journal entry to record the Sale of Equipment

Debit : Cash $325,000

Debit : Profit and loss $75,000

Debit : Accumulated depreciation $150,000

Credit : Equipment at Cost $550,000

Explanation:

During a sale transaction the entity recognizes 1. The Cash Proceeds resulting from the sale, 2. The Profit or loss resulting from the sale, 3.The entity derecognizes the Cost or Book Value of the Asset as well as the Accumulated depreciation.

A profit of $630,000 has been earned as a result of the sale of the Patent, whereas a loss of $75,000 has been incurred as a result of sale of Equipment.

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Arte-miy333 [17]
Well according to my calculations and 20+ yrs of experience in business your answer should be 15,000
4 0
3 years ago
What type of good is often provided by the government because it is hard to get people to voluntarily contribute their fair shar
gayaneshka [121]

Answer:

Option (D) is the right answer.

Explanation:

According to the scenario, the most appropriate answer is option (D) because public goods are given by the government and It can be used by everyone at a time and without any cost.

While the other options are incorrect because of the following reasons:

  • Private goods are not given by the government.
  • Club goods can be given by the government but at a cost.
  • Common resource goods are of government and can not be used by everyone.
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5 0
3 years ago
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results whi
Lelu [443]

Answer:

Moonbeam Company

a) Incremental analysis for the special order:

Sales revenue ($7.87 * 20,800) =   $163,696

Variable costs ($6.62 * 20,800) =    (137,696)

Contribution margin =                        26,000

Shipping costs                                     (2,900)

Net income from special order =     $23,100

b) Moonbeam should accept the special order.  It generates some net income for covering the company's fixed cost and does not exceed the company's plant capacity.  It only adds about 4% to the operating plant capacity.

Explanation:

a) Data and Calculations:

                                        Total               Variable        Fixed

Sales (375,200 units)  $4,378,000  

Cost of goods sold        2,588,880      1,812,216       776,664

Gross profit                     1,789,120

Operating expenses        839,510        671,608        167,902

Net income                    $949,610

Total costs                                       $2,483,824    $944,566

Selling price = $11.67 ($4,378,000/375,200)

Variable costs per unit = $6.62 ($2,483,824/375,200)

Total plant capacity = 500,267 units (375,200/75%)

Increase in plant capacity = 396,000 (375,200 + 20,800)

6 0
3 years ago
Few restaurant management students opt for ____________________management, believing it lacks the variety, glamour and opportuni
sammy [17]

Answer: Quick service

Explanation:

  According to the given question, the few restaurants student opting quick service management is the process of lack of varieties, opportunities and the glamour.

The Quick service is one of the disadvantage method using in the management as it contain the fast serving of the food and lack of the various types of variety in the food menu.

We are not able to manage all the stuff in order to satisfying the customer requirement and also lacks the opportunities for the self expression. Therefore, Quick service is the correct answer.  

4 0
2 years ago
College president Wally contracts with Alice to teach a business law class. Alice does a fine job teaching, but she has an argum
solong [7]

Answer:

Specific performance

Explanation:

Based on the information provided within the question it can be said that in this scenario the order that Wally should seek is known as Specific performance. This is a court order which forces the breaching party to perform the agreed upon act, and by doing so complete the agreed upon specifications set forth by the contract. Failure to do so will find the individual in contempt of court.

6 0
3 years ago
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